Massachusetts-based Curaleaf Holdings Inc., has completed its acquisition of Oregon’s Cura Partners including 53 dispensaries, wholesale business, and Select brand. The deal, initially announced worth $950 million, closed at less than $400 million, according to Oregon Live.
The deal comes on the heels of a $110,000 Oregon Liquor Control Commission fine against Cura for incorrectly labeling more than 180,000 Select vape products as “100 percent cannabis” despite containing “botanically derived terpenes and/or medium-chain triglyceride (MCT) oil as an ingredient.” A lawsuit has also been filed against the company for the claims and mislabeling, which regulators called an internal communication problem rather than an attempt to deceive.
Joseph Lusardi, CEO of Curaleaf, called the deal “a major milestone” in the company’s history, marking “an unprecedented phase of growth” for the firm.
“As we’ve scaled, Curaleaf has pioneered the U.S. cannabis industry, and we’re incredibly excited about the future and our leadership role in it. Our entire organization is focused on accelerating our growth as a combined company with two of the fastest growing cannabis brands in the country.” – Lusardi, in a press release
Cameron Forni, the founder of Select and one of the company’s largest shareholders, will serve as president of the brand.
In 2018, Cura’s sales reached $118 million and was the state’s largest cannabusiness, according to Oregon Live, who note that Cura had conducted a round of layoffs during the holiday season, but the details of those layoffs remain unknown.
The precipitously lower-than-expected closing price comes amid sharp declines in cannabis stocks and lower overall company valuations in the space.
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